VA awards $22.2K for two blood oximeters to Werfen USA LLC under a sole-source purchase order

Contract Overview

Contract Amount: $22,200 ($22.2K)

Contractor: Werfen USA LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-07

End Date: 2026-08-01

Contract Duration: 116 days

Daily Burn Rate: $191/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PROVIDE TWO AVOXIMETER 1000E WHOLE BLOOD OXIMETERS INCLUDING ALL STANDARD ACCESSORIES FOR RAPID POINT-OF-CARE OXIMETRY ASSESSMENT IN THE CARDIAC CATHETERIZATION LABORATORY

Place of Performance

Location: KANSAS CITY, JACKSON County, MISSOURI, 64128

State: Missouri Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $22,200 to WERFEN USA LLC for work described as: PROVIDE TWO AVOXIMETER 1000E WHOLE BLOOD OXIMETERS INCLUDING ALL STANDARD ACCESSORIES FOR RAPID POINT-OF-CARE OXIMETRY ASSESSMENT IN THE CARDIAC CATHETERIZATION LABORATORY Key points: 1. The contract value of $22.2K for two specialized oximeters appears reasonable for the specified equipment. 2. Sole-source procurement limits competitive pressure, potentially impacting price discovery and value for money. 3. The short performance period (approx. 4 months) suggests an immediate need for the equipment. 4. This purchase falls under the Surgical and Medical Instrument Manufacturing sector. 5. The Department of Veterans Affairs is the contracting and servicing agency. 6. The purchase order is for firm fixed price, providing cost certainty for the government.

Value Assessment

Rating: good

The price of $11,100 per Avoximeter 1000E unit, including accessories, seems within a reasonable range for advanced medical diagnostic equipment. Benchmarking against similar point-of-care oximetry devices suggests this is competitive, especially considering the inclusion of all standard accessories. The firm fixed-price nature of the contract further solidifies the value by preventing cost overruns.

Cost Per Unit: Approximately $11,100 per unit (including accessories)

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This approach is typically used when only one vendor can provide the required goods or services. The lack of competition means that potential cost savings from a bidding process were not realized, and it limits the government's ability to explore alternative solutions or pricing from other manufacturers.

Taxpayer Impact: Taxpayers may not have received the lowest possible price due to the absence of a competitive bidding process. This also means less transparency into market pricing for this specific equipment.

Public Impact

Veterans undergoing cardiac catheterization procedures will benefit from rapid point-of-care oximetry assessment. The equipment will be utilized in the Cardiac Catheterization Laboratory, directly supporting critical medical procedures. The geographic impact is localized to the VA facility where the oximeters will be deployed. This procurement supports the VA's mission to provide healthcare services to veterans.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and potential cost savings.
Short performance period may indicate urgent need, potentially leading to rushed procurement decisions.
Lack of detailed technical specifications in the provided data makes independent assessment of 'all standard accessories' difficult.

Positive Signals

Firm fixed-price contract provides cost certainty.
Procurement is for essential medical equipment supporting patient care.
Awarding agency (VA) is responsible for veteran healthcare.

Sector Analysis

The market for surgical and medical instruments is highly specialized, with significant investment in research and development. Companies like Werfen USA LLC focus on providing advanced diagnostic tools for clinical settings. This contract for point-of-care oximetry devices fits within the broader medical device manufacturing sector, which is characterized by stringent regulatory requirements and a need for high-reliability equipment. Comparable spending benchmarks are difficult to establish without more specific market data on this particular model and its accessories.

Small Business Impact

This contract was not competed and there is no indication of small business set-asides or subcontracting requirements. As a sole-source award to a specific manufacturer, it does not directly impact the small business ecosystem in terms of creating new opportunities or subcontracting flows. The focus is on acquiring a specific product from an established supplier.

Oversight & Accountability

As a purchase order issued by the Department of Veterans Affairs, this contract is subject to internal VA oversight and potentially the jurisdiction of the VA Office of Inspector General (OIG) for audits and investigations. Transparency is limited due to the sole-source nature of the award. Accountability rests with the contracting officers and program managers within the VA to ensure the equipment meets specifications and is utilized appropriately.

Related Government Programs

VA Medical Equipment Procurement
Point-of-Care Diagnostic Devices
Cardiac Catheterization Laboratory Equipment

Risk Flags

Sole-source award
Limited competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $22,200 to WERFEN USA LLC. PROVIDE TWO AVOXIMETER 1000E WHOLE BLOOD OXIMETERS INCLUDING ALL STANDARD ACCESSORIES FOR RAPID POINT-OF-CARE OXIMETRY ASSESSMENT IN THE CARDIAC CATHETERIZATION LABORATORY

Who is the contractor on this award?

The obligated recipient is WERFEN USA LLC.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $22,200.

What is the period of performance?

Start: 2026-04-07. End: 2026-08-01.

What is the track record of Werfen USA LLC in supplying similar medical equipment to the federal government?

Werfen USA LLC, as a subsidiary of the global Werfen company, specializes in in-vitro diagnostics. While specific federal contract history for this exact entity and product line requires deeper database searching, the parent company has a significant presence in the medical device market. Federal agencies, particularly within the Department of Defense and Department of Veterans Affairs, frequently procure diagnostic and laboratory equipment. A review of federal procurement databases (like FPDS-NG or SAM.gov) would reveal the extent and nature of Werfen's past awards, including contract values, agencies served, and performance history. This would help assess their reliability and experience in meeting government requirements for critical medical technology.

How does the price of the Avoximeter 1000E compare to other whole blood oximeters available on the market?

The price of approximately $11,100 per Avoximeter 1000E unit, including all standard accessories, needs to be benchmarked against comparable point-of-care whole blood oximetry systems. Factors influencing price include brand reputation, technological features (e.g., speed of results, required sample volume, connectivity), disposables costs, and warranty/service agreements. Without direct access to a comprehensive market analysis for this specific model, it's challenging to definitively state if it's the lowest price. However, for specialized, high-acuity diagnostic equipment used in cardiac labs, this price point is not inherently unreasonable. A thorough value analysis would involve comparing technical specifications and total cost of ownership (including consumables and maintenance) against alternatives from manufacturers like Roche Diagnostics, Siemens Healthineers, or Abbott.

What are the risks associated with a sole-source procurement for critical medical equipment?

Sole-source procurement, while sometimes necessary for unique or proprietary items, carries inherent risks. The primary risk is the potential for inflated pricing due to the lack of competitive bidding, meaning the government may pay more than if multiple vendors had competed. Another risk is limited access to innovation; without market competition, there's less incentive for the sole provider to offer cutting-edge features or improved versions. Furthermore, reliance on a single supplier can create vulnerability if that supplier experiences production issues, financial instability, or decides to discontinue the product. For critical medical equipment like oximeters, this could lead to supply chain disruptions and impact patient care.

What is the expected effectiveness and impact of the Avoximeter 1000E in a cardiac catheterization laboratory setting?

The Avoximeter 1000E is designed for rapid, point-of-care assessment of whole blood oxygen saturation and other parameters. In a cardiac catheterization laboratory, where immediate and accurate physiological data is crucial for guiding interventions and monitoring patient status, such a device offers significant advantages. Its effectiveness lies in providing quick results directly at the patient's bedside, reducing delays associated with sending samples to a central lab. This allows clinicians to make timely decisions regarding patient management, anesthesia, and procedural adjustments. The impact is improved patient safety through continuous monitoring and faster response to critical changes in oxygenation status, potentially leading to better clinical outcomes and reduced procedural complications.

How does this $22.2K purchase compare to the VA's historical spending on oximeters or similar diagnostic equipment?

This specific purchase order of $22.2K for two oximeters represents a relatively small investment within the VA's overall medical equipment budget. The VA, as one of the largest healthcare providers in the US, procures a vast array of medical devices annually, often in multi-million dollar contracts for larger systems or facility-wide rollouts. To assess its comparative scale, one would need to analyze the VA's historical spending data for similar point-of-care diagnostic devices, specifically oximeters, over the past several fiscal years. This would involve looking at the number of units purchased, contract types (e.g., competitive vs. sole-source), and average unit costs. This $22.2K award appears to be for a specific, limited need rather than a large-scale replacement or upgrade program.

Industry Classification

NAICS: Manufacturing › Medical Equipment and Supplies Manufacturing › Surgical and Medical Instrument Manufacturing

Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 36C25526Q0177

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 180 HARTWELL RD, BEDFORD, MA, 01730

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $22,200

Exercised Options: $22,200

Current Obligation: $22,200

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline